Conventional home loans in Texas, from 3% down
The most common home loan in America, with mortgage insurance that goes away and the flexibility to buy a primary home, second home or rental. We shop a panel of lenders to price it right.
Free, no obligation · or call 512-588-2771
Not sure conventional is the right loan?
Conventional is the default for a reason, but most buyers have questions before they commit to it.
Conventional is flexible, widely available, and often the lowest-cost route over time for buyers with solid credit and steady income.
From first call to closing, in four steps
Tell us your situation
A 30-minute call or a short online application: income, savings, credit, and the kind of property you want.
Get a real plan
We compare your options across programs and lenders, explain the costs in plain English, and tell you if anything is worth fixing first.
Get approved
With your documents in hand, we move your file to underwriting and issue the approval you need to move forward with confidence.
Close with confidence
We manage the file through appraisal, underwriting and closing, and keep you updated at every stage.
Flexible today, cheaper over time
Low down payment options
As little as 3% down, or 20% to avoid private mortgage insurance entirely.
Mortgage insurance that goes away
PMI cancels automatically at 78% and can be removed at 80%, with no refinance required.
Primary, second home or rental
One loan type, three ways to use it. Investment properties usually need a larger down payment.
Pick the term that fits
Fixed 10, 15 and 30-year terms, or adjustable 3/1, 5/1 and 7/1 options.
Best pricing for strong credit
Scores of 740 and above typically earn the strongest conventional pricing.
Room to grow
If your price runs past the conforming limit, we quote a jumbo alternative right next to it.
Strong credit? Let us show you what it is worth.
We compare conventional against FHA and other programs on your numbers, so you see the real monthly payment and cash to close.
Conventional loan requirements at a glance (2026)
In late 2025, Fannie Mae removed its blanket minimum credit score from its underwriting guidelines and moved to a broader, file-wide risk review. That does not mean no score is needed. Individual lenders still set their own minimums, commonly around 620, and that is where a broker helps.
- Credit score: about 620 is the typical lender minimum, and 740 or higher usually earns the strongest pricing.
- Down payment: as low as 3%, or 20% to avoid PMI.
- Debt-to-income: generally under 45–50%.
- Documentation: two years of income and employment history.
- Property types: primary residence, second home, or rental, with a larger down payment on investment properties.
How your down payment changes your mortgage insurance
The more you put down, the less mortgage insurance costs, and at 20% it is gone.
| Down payment | Mortgage insurance | Good to know |
|---|---|---|
| As low as 3% | PMI required | The lowest cash up front. Some low-down-payment programs are limited to first-time buyers or income caps. |
| 5% to just under 20% | PMI required | PMI generally costs less as your down payment grows. |
| 20% or more | No PMI | Skip mortgage insurance entirely. |
PMI cost depends on your credit score, down payment and loan amount. Ask us for a quote on your numbers.
PMI goes away. Here is how.
Putting less than 20% down means private mortgage insurance until your balance reaches about 78–80% of the home’s original value. PMI cancels automatically at 78%, and you can ask to have it removed at 80%.
FHA mortgage insurance, by contrast, often lasts for the life of the loan, which is one reason buyers with strong credit often choose conventional. See the full comparison in our FHA vs. conventional loans guide, or the details in conventional loan requirements for 2026.
Want a real payment, not a guess?
A quick call gets you a straight answer on payment, cash to close, and which program costs the least.
Conventional vs. FHA at a glance
Both work for the right buyer. This is how they usually stack up.
| Conventional | FHA | |
|---|---|---|
| Minimum down | As low as 3% | 3.5% (580+ credit) |
| Credit | About 620 typical; best pricing at 740+ | Lower scores accepted |
| Mortgage insurance | PMI cancels at 78–80% loan-to-value | Upfront plus annual, often for the life of the loan |
| Occupancy | Primary, second home or investment | Primary residence only |
| Often best when | Credit is strong and income is steady | Credit is lower or cash is tight |
We run both on your numbers and show them side by side.
Conforming limits, and when jumbo comes in
Conventional loans inside the conforming limit get standard Fannie Mae and Freddie Mac pricing. If your purchase price sits near the limit, ask us to compare a slightly larger down payment against a jumbo loan, because staying under the line can change your pricing.
Buying above the limit? See our jumbo loans page for how those work.
Self-employed, or buying a rental?
If your tax returns do not show your real income, bank statement loans qualify you on 12 to 24 months of deposits instead. If you are buying a rental, DSCR loans qualify the property’s rent instead of your personal income.
Meet your Conventional loan officer
Matthew MontsDeOca is an independent mortgage broker based in Austin — Texas’s state capital — licensed to help buyers and homeowners across the entire state, from Houston and San Antonio to Dallas-Fort Worth and everywhere between. Because Wise Capital shops a panel of lenders instead of selling one bank’s products, you get advice on which program actually fits, including when this one is not the right answer.
Your questions, answered
What credit score do I need for a conventional loan?
How much do I need down on a conventional loan?
When does PMI go away?
Can I use a conventional loan for a second home or rental?
What is the conforming loan limit?
Is conventional better than FHA?
How long does it take to close a conventional loan?
Book a free 30-minute call
Not ready to apply? Talk it through first. We will look at your numbers and tell you honestly what your best move is.
- 30 minutes, by video (Google Meet) or phone
- Free, with no obligation to apply
- A clear next step, whether that is applying now or fixing one thing first
- You talk to a licensed loan officer, not a call center
Pick a time that works for you
Choose a slot on the calendar and you will get a confirmation by email. No obligation, no pressure.
Prefer to talk now? Call 512-588-2771 · open the calendar in a new tab.
Let us show you what you qualify for.
Check your options in a few minutes, or book a quick call and we will walk you through it.
Or call 512-588-2771 · Free, no obligation
Keep learning, in plain English
Other loan programs
*Minimum 3% down payment programs may be limited to first-time buyers or eligible incomes and require private mortgage insurance. Down payments below 20% require PMI. Credit, income, property and loan-limit requirements apply. Interest rates and APR depend on your credit profile, loan amount and market conditions. Ask us for a personalized Loan Estimate.
Wise Capital Mortgage, LLC · 5900 Balcones Drive #23333, Austin, TX 78731 · NMLS #2092335 · Equal Housing Lender. Matthew MontsDeOca, NMLS #1034513. This page is for general information and is not a commitment to lend or an offer of credit. Loan programs, eligibility, terms and rates are subject to change and to underwriting approval. You can verify our licensing at the NMLS Consumer Access website, nmlsconsumeraccess.org.